This post was last updated on July 22nd, 2016
How to Incorporate Your Trucking Business in Delaware
(Even If You Don’t Live There)
While there are many ways to incorporate, there are some basics that need to be handled beforehand. Namely, the type of entity that will be opened. The following choices are offered:
- Limited Liability Companies
- Limited Partnerships
- General Partnerships
Sole proprietorships can be opened as well, but they require that a person lives within the state.
Choosing the right entity will depend on your business operations and needs. While corporations provide the utmost in owner safety, they are double taxed. An LLC is a popular choice, but the ultimate decision truly depends on your company’s needs.
Once an entity is chosen, you will be ready to open your business. Many companies will allow this to be done with ease, but you also have the option of doing the entire process on your own. The state’s website, delaware.gov, has information that you can use to begin incorporating today.
There are a few requirements that need to be considered regardless of how you choose to incorporate. These include:
- Registered Agent: These agents are required by state law and will need to be a resident of the state. This can be a business or individual that is authorized to conduct business in the state. The physical address of the agent must be in Delaware. Registered agents can be the company themselves if operations take place in Delaware.
- Name Reservations: By forming a business, you have not yet secured your business name. Name reservation can be done so that you secure your name for a period of 120 days. This is highly advised for businesses that want to secure the rights to their potential business name.
- Taxes: Every year, a corporation will have to pay a tax to the state. This is a minimal fee of just $250 for entities of the following type: LP, LLC and GP.
Certificate of Filing
A certificate of filing must be completely filled out and sent to the state. This filing will require information about the entity and the state website has all of these files ready to be filled out on their website. By going here, you will find certificates for numerous entity types.
Once completely filled out, this certificate must be sent to the Division of Corporations. This is the division that is used for all Delaware corporations and their mailing address is:
John G. Townsend Building
401 Federal Street Suite 4
Dover, DE 19901
Any registration fees found on the certificate of filing form must be submitted at this time to ensure that your entity is properly created. A response of whether the entity was granted creation will be sent back to the sender.
Incorporating with Help
There are many ways in which you can have professionals help you with incorporating. While the process is simple to do alone, you may miss licensing issues or pick a name that is already trademarked or in use. This will prompt legal issues that no new business wants.
There are two ways in which to get professional guidance when creating a Delaware corporation.
- Lawyers: Business lawyers will help with the registration of the business as well as other aspects, such as name research and licenses that are needed. Lawyers can also lend their expertise to choosing the right entity type. Lawyers are the safest choice, but they do come at a high premium.
- Online: Many online businesses focus solely on helping new businesses incorporate. LegalZoom and Incorporate.com are just two of the many businesses that can help you along the way. There are definitely bonuses to this type of creation. First, you will have assistance from a professional and will be guided through the whole process. Secondly, everything is done online and it couldn’t be any easier.
The road to incorporating is not a difficult one. Delaware welcomes new businesses with open arms and there are many companies that will to assist you with your business’ creation. Even the state website outlines the process so that you can fully understand what is going to transpire.
The one hurdle that many new business owners fear is that of the registered agent. Oftentimes, a lawyer may be able to act as an agent if they operate in the state. Online companies will often offer a recommendation to a reputable registered agent. These agents will require a yearly fee, but it is quite inexpensive.
Once your company is opened, you must maintain the appropriate tax records and filing every year. The state tax for your entity must also be paid on a yearly basis. Now, you can enjoy all of the benefits of owning a business formed in Delaware.